What is Mollak System?

mollak

Dubai Land Department, through its regulatory arm Real Estate Regulatory Authority (RERA), has launched a first-of-its-kind e-system called Mollak, the Arabic word for Owners. Mollak regulates jointly owned properties, service charges and monitor the payment of service charges in jointly-owned properties in Dubai.

Mollak provides a new and integrated system to regulate, monitoring accounts related to service charges and providing support services for all parties involved in Jointly owned properties in Dubai.

Mollak, A New System

As the entire system is new, a lot of clients find the new invoices confusing that they are receiving from the Mollak system. They unsure on what they should be doing with the invoices, and why the invoices are so high, and why in a space of a few minutes they have received invoices that keep increasing.

Why are they receiving invoices from Dubai Land Dept, is something wrong? Is everything ok? The Mollak system is the Owner Association Management system by the Dubai Land Department. One of their purposes is a centralized invoicing system. The way it should have worked for the majority of clients is for 2020, the OA Manager i.e. Kingfield or Saga or ECM would have loaded the balances as of 2019 to the system.

How Mollak Works

Dubai Land Department RERA’s Mollak system is designed to issue 4 Invoices a year, i.e. one invoices each Quarter, so what would have happened if at the end of 2019, I had a balance of 4,000 on my account (i.e. unpaid services charges), than based on the finalized budget submitted by the OA Manager to the Land Department, i.e. 14 Dirhams for the above apartment, which is a 1,000 Sq Ft Apartment, which would make it 14,000 for the year. I would receive 3 invoices (They have mostly invoiced only for 2 or 3 quarters for now). My first bill, which would be for 1 January to 31st March would be for AED 7,500 (Balance 4,000 + 3,500 for Current Quarter), I would immediately receive another bill for 11,000 (4,000 + 3,500 + 3,500) and if I was invoiced for 3rd Quarter, I would get another bill for 14,500 (4,000 + 3,500 + 3500 + 3500).

A lot of people who have tried to pay the bill via the Mollak system need to note once the 3rd Quarter Invoice is issued the payment link for Quarter 1 and Quarter 2 are invalid and can no longer be used.  Please also note if you are paying the Service Charges online, via the Mollak System, it takes 2 -3 weeks to reconcile back to the OA Manager, if you pay to the OA Manager it takes a few days to update the Mollak system. In general clients need to be a little patient as there is a lot of overload on the OA Manager by unclear communication and people not fully understanding the system.

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